PIMCO announced that between April 2011 and November 17, it had an advisory fee waiver in place on the PIMCO All Asset All Authority Fund to limit the fees PIMCO earned on underlying funds managed by PIMCO. However, according to a post on the fund’s website, due to an error in the calculation methodology, the waiver was less than it should have been.
PIMCO discovered the error when reviewing its fee waiver calculation process. Following the discovery, the firm instructed the fund’s accounting agent to correct the methodology, and the correction was made. PIMCO said it is now independently calculating any applicable fee waiver to ensure the amounts match the bank’s records.
PIMCO is now in the process of reimbursing investors affected by the miscalculation, both from the additional fees and the incremental amount of the estimated foregone performance the fees caused, plus interest. An independent forensic accounting firm verified PIMCO’s calculations. The reimbursement period is expected to end on March 13, 2020.